Why is the oil price up today? - June 14

[dan_s]

OilPrice.com:
"News of OPEC+ members underperforming their production targets is far from surprising, yet this week’s oil trading has been palpably impacted by the prospect of undersupply. Whilst Chinese demand is suffering once again from COVID lockdowns, continued supply disruption in Libya and OPEC revising its growth outlook downwards have more than offset bearish sentiment. With several banks and rating agencies hiking their crude price outlook for 2022, the new norm for ICE Brent appears to be around the $125 per barrel mark." < JP Morgan thinks $175 will be seen in a few months.
-------------------------------------
As I have been telling you for months in my weekly podcasts: "OPEC+ is tapped out". They have very little additional oil production to bring to market and the little bit that Saudi Arabia, UAE and Kuwait can add is more than being offset by other cartel members that are on decline.

Team Biden is clueless.

[dan_s]

OilPrice.com
"OPEC Cuts Supply Outlook Further. In its latest Oil Monthly Report, OPEC has cut its non-OPEC liquids supply growth by 250,000 b/d compared to May, most probably reflecting slower US uptake, whilst keeping the annual demand figure of 100.3 million b/d untouched despite China’s travails."

"Libya Still Cannot Recover from Disruptions. As the internecine conflict in Libya degenerates further, some 1.1 million b/d of Libyan production is currently halted after protesters took offline the 200,000 b/d Sarir field and shut the Es Sider and Ras Lanuf ports, leaving only a trickle of erstwhile output."